Oneida Co. receives A+ in bond rating

For the first time in seven years, Oneida County’s bond rating has been upgraded by a major investor’s service.

Elizabeth Cooper

For the first time in seven years, Oneida County’s bond rating has been upgraded by a major investor’s service.

Standard & Poor’s has bumped the county’s rating from A to A+ in what county officials are calling a testament to their good management and planning. Fitch’s Investors Service held the county steady at A-.

“Looking at how the economy is nationwide, that we had an upgrade in this climate shows that we are taking a serious look at our fiscal condition,” Oneida County Executive Anthony Picente said.

County Comptroller Joseph J. Timpano said the new rating showed the county has “a strong fiscal management team and strong leadership” and has moved “prudently and judiciously.”

Standard & Poor’s cited statewide changes as well as county management.

“The rating upgrade reflects the county’s improved financial position, which is primarily the result of the state’s recent Medicaid cost cap and additional sales tax revenues, an increase of reserve levels compared with fiscal 2004, and management’s continued willingness to implement ongoing substantive revenue enhancements and expenditure control actions,” the agency said in a release.

The A to A+ rating is average for counties in New York state, said Robyn Prunty, a senior director in Standard & Poor’s public finance department.

She also pointed to economic development initiatives at Griffiss Business and Technology Park and in New Hartford.

In concrete terms, the changed rating will save the county an estimated $75,000 on interest on a $30 million bond issue. That may not seem like much, compared to the county’s $330 million budget, but Timpano said that would add up over the years if interest conditions remain the same.

One way to gauge Oneida County’s fiscal stability is to look at its bond rating.
Picente said he had increased the county’s restricted reserve account to $8 million and increased on-hand reserves for economic development and capital projects.

Every year, county officials make their case to the three top bond-rating agencies – Standard & Poor’s, Moody’s Investor’s Service and Fitch’s Investors Service.

They provide documentation of the county’s fiscal picture and talk about their plans for the upcoming year. Moody’s has not yet issued its assessment.

Observer-Dispatch

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